Antique Broking maintains sell on Maruti Suzuki India, revises target price to Rs 5,011

Antique Stock Broking has maintained sell rating on Maruti Suzuki India in the long term and revised target price to Rs 5,011 from Rs 5,098. The stock ended down 2.9% at ?6,094.90 on Wednesday while the Sensex closed 189.43 points down at 37,451.84.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 18738.80 crore, down -9.65 % from last quarter sales of Rs 20740.70 crore and down -14.10 % from last year same quarter sales of Rs 21813.80 crore. The company has reported net profit after tax of Rs 1363.40 Crore in latest quarter.


Investment Rationale

The company's volume growth outperformance phase is over and it is likely to see market share dip and continued margin pressure due to regulations-led feature upgrades, said Antique. Early signs of the festive season are not encouraging either, considering states like Kerala are staring at around 30% lower retail volume vis-à-vis last year's weak base due to floods, said Antique.